Common use of United Nations Convention on Contracts for the International Sale of Goods Clause in Contracts

United Nations Convention on Contracts for the International Sale of Goods. (CISG). Adopted by a diplomatic conference on 11 April 1980, the Convention establishes a comprehensive code of legal rules governing the formation of contracts for the international sale of goods, the obligations of the buyer and seller, remedies for breach of contract and other aspects of the contract. The Convention entered into force on 1 January 1988. Academic year 2018/2019 🞐 The United Nations Convention on Contracts for the International Sale of Goods (also referred to CISG) is a treaty offering a uniform international sales law that, as of July 2008, had been ratified by 71 countries that account for a significant proportion of world trade, making it one of the most successful international uniform laws. Japan is the most recent state to have ratified the Convention. 🞐 The CISG was developed by the United Nations Commission on International Trade Law (UNCITRAL) and was signed in Vienna in 1980. The CISG is sometimes referred to as the Vienna Convention (but is not to be confused with other treaties signed in Vienna). 🞐 It came into force as a multilateral treaty on 1 January 1988, after being ratified by eleven countries. 🞐 CISG has been regarded as a success for UNCITRAL as the Convention has since been accepted by States from ‘every geographical region, every stage of economic development and every major legal, social and economic system. Academic year 2018/2019 Formation of an international sales contract Classic way: Offer and Acceptance. An offer may also appear in form of an order, that is performed by the other party. Battle of Forms: Often the parties exchange orders and acceptances or counterorders in forms, that are accompanied by the general contractual conditions. The question hereby arises, if a contract was made (matching orders) and what its contents are. Academic year 2018/2019 THE INCOTERMS INCOTERMS 2010 by the International Chamber of Commerce (ICC) ICC rules for the use of domestic and international trade terms Academic year 2018/2019 🞂 It is essential for shippers to know the exact status of their shipments in terms of ownership and responsibility. 🞂 It is also vital for sellers & buyers to arrange insurance on their goods while the Goods are in their "legal" possession. Lack of insurance can result in wasted time, lawsuits, and broken relationships. 🞂 INCOTERMS can thus have a direct financial impact on a company's business. What is important is not the acronyms, but the business results. Often companies like to be in control of their freight. 🞂 That being the case, sellers of goods might choose to sell CIF, which gives them a good grasp of shipments moving out of their country, and buyers may prefer to purchase FOB, which gives them a tighter hold on goods moving into their country. Academic year 2018/2019 The seller usually guarantees certain characteristics of the product for a certain period of time, but would generally seek to limit this guarantee as far as possible. Laws on product liability are usually strict and can not be altered by contract. Only the amount of damage can be reduced. (ceiling) Clauses on warranty are usually followed by clauses concerning indemnification and regulation concerning the non fulfilment of the assumed obligation. Academic year 2018/2019 Incoterms are standard trade definitions most commonly used in international sales contracts. Devised and published by the International Chamber of Commerce, they are at the heart of world trade. Each group means additional responsibilities and costs for the exporter. For example, the most commonly used terms under each of these groups are: Ex Works (EXW), Free Alongside Ship (FAS), Free On Board (FOB), Cost and Freight (CFR), Cost, Insurance and Freight (CIF), and Delivered Duty Paid (DDP. INCOTERMS The first letter is an indiction of the group to which the term belongs. ICC introduced the first version of Incoterms - short for "International Commercial Terms" - in 1936. Since then, ICC expert lawyers and trade practitioners have updated them six times to keep pace with the development of international trade (actual version 2004). Academic year 2018/2019 Academic year 2018/2019 EXW - Ex-Works, named place where shipment is available to the buyer, not loaded. The seller will not contract for any transportation. International Carriage NOT Paid by Seller FCA - Free Carrier, unloaded at the seller's dock OR a named place where shipment is available to the international carrier or agent, not loaded. This term can be used for any mode of transport. FAS - Free Alongside Ship, named ocean port of shipment. Ocean shipments that are NOT containerized. FOB - Free On Board vessel, named ocean port of shipment. This term is used for ocean shipments only where it is important that the goods pass the ship's rail.

United Nations Convention on Contracts for the International Sale of Goods. (CISG). Adopted by a diplomatic conference on 11 April 1980, the Convention establishes a comprehensive code of legal rules governing the formation of contracts for the international sale of goods, the obligations of the buyer and seller, remedies for breach of contract and other aspects of the contract. The Convention entered into force on 1 January 1988. Academic year 2018/2019 🞐2014/2015  The United Nations Convention on Contracts for the International Sale of Goods (also referred to CISG) is a treaty offering a uniform international sales law that, as of July 2008, had been ratified by 71 countries that account for a significant proportion of world trade, making it one of the most successful international uniform laws. Japan is the most recent state to have ratified the Convention. � � The CISG was developed by the United Nations Commission on International Trade Law (UNCITRAL) and was signed in Vienna in 1980. The CISG is sometimes referred to as the Vienna Convention (but is not to be confused with other treaties signed in Vienna).  🞐 It came into force as a multilateral treaty on 1 January 1988, after being ratified by eleven countries. 🞐 CISG has been regarded as a success for UNCITRAL as the Convention has since been accepted by States from ‘every geographical region, every stage of economic development and every major legal, social and economic system. Academic year 2018/22014/2015 019 Formation of an international sales contract Classic way: Offer and Acceptance. An offer may also appear in form of an order, that is performed by the other party. Battle of Forms: Often the parties exchange orders and acceptances or counterorders in forms, that are accompanied by the general contractual conditions. The question hereby arises, if a contract was made (matching orders) and what its contents are. Academic year 2018/22014/2015 019 THE INCOTERMS INCOTERMS 2010 by the International Chamber of Commerce (ICC) ICC rules for the use of domestic and international trade terms Academic year 2018/2012014/2015  9 🞂 It is essential for shippers to know the exact status of their shipments in terms of ownership and responsibilit y. 🞂 It is also vital for sellers & buyers to arrange insurance on their goods while the Goods are in their "legal" possession. Lack of insurance can result in wasted time, lawsuits, and broken relationshi ps. 🞂 INCOTERMS can thus have a direct financial impact on a company's business. What is important is not the acronyms, but the business results. Often companies like to be in control of their frei ght. 🞂 That being the case, sellers of goods might choose to sell CIF, which gives them a good grasp of shipments moving out of their country, and buyers may prefer to purchase FOB, which gives them a tighter hold on goods moving into their country. Academic year 202014/2015 18/2019 The seller usually guarantees certain characteristics of the product for a certain period of time, but would generally seek to limit this guarantee as far as possible. Laws on product liability are usually strict and can not be altered by contract. Only the amount of damage can be reduced. (ceiling) Clauses on warranty are usually followed by clauses concerning indemnification and regulation concerning the non fulfilment of the assumed obligation. Academic year 202014/2015 18/2019 Incoterms are standard trade definitions most commonly used in international sales contracts. Devised and published by the International Chamber of Commerce, they are at the heart of world trade. Each group means additional responsibilities and costs for the exporter. For example, the most commonly used terms under each of these groups are: Ex Works (EXW), Free Alongside Ship (FAS), Free On Board (FOB), Cost and Freight (CFR), Cost, Insurance and Freight (CIF), and Delivered Duty Paid (DDP. INCOTERMS The first letter is an indiction of the group to which the term belongs. ICC introduced the first version of Incoterms - short for "International Commercial Terms" - in 1936. Since then, ICC expert lawyers and trade practitioners have updated them six times to keep pace with the development of international trade (actual version 2004). Academic year 202014/2015 18/2019 Academic year 202014/2015 18/2019 EXW - Ex-Works, named place where shipment is available to the buyer, not loaded. The seller will not contract for any transportation. International Carriage NOT Paid by Seller FCA - Free Carrier, unloaded at the seller's dock OR a named place where shipment is available to the international carrier or agent, not loaded. This term can be used for any mode of transport. FAS - Free Alongside Ship, named ocean port of shipment. Ocean shipments that are NOT containerized. FOB - Free On Board vessel, named ocean port of shipment. This term is used for ocean shipments only where it is important that the goods pass the ship's rail.

United Nations Convention on Contracts for the International Sale of Goods. (CISG). Adopted by a diplomatic conference on 11 April 1980, the Convention establishes a comprehensive code of legal rules governing the formation of contracts for the international sale of goods, the obligations of the buyer and seller, remedies for breach of contract and other aspects of the contract. The Convention entered into force on 1 January 1988. Academic year 2018/2019 2013/2014 🞐 The United Nations Convention on Contracts for the International Sale of Goods (also referred to CISG) is a treaty offering a uniform international sales law that, as of July 2008, had been ratified by 71 countries that account for a significant proportion of world trade, making it one of the most successful international uniform laws. Japan is the most recent state to have ratified the Convention. 🞐 The CISG was developed by the United Nations Commission on International Trade Law (UNCITRAL) and was signed in Vienna in 1980. The CISG is sometimes referred to as the Vienna Convention (but is not to be confused with other treaties signed in Vienna). 🞐 It came into force as a multilateral treaty on 1 January 1988, after being ratified by eleven countries. 🞐 CISG has been regarded as a success for UNCITRAL as the Convention has since been accepted by States from ‘every geographical region, every stage of economic development and every major legal, social and economic system. Academic year 2018/22013/2014 019 Formation of an international sales contract Classic way: Offer and Acceptance. An offer may also appear in form of an order, that is performed by the other party. Battle of Forms: Often the parties exchange orders and acceptances or counterorders in forms, that are accompanied by the general contractual conditions. The question hereby arises, if a contract was made (matching orders) and what its contents are. Academic year 2018/22013/2014 019 THE INCOTERMS INCOTERMS 2010 by the International Chamber of Commerce (ICC) ICC rules for the use of domestic and international trade terms Academic year 2018/22013/2014 019 🞂 It is essential for shippers to know the exact status of their shipments in terms of ownership and responsibility. 🞂 It is also vital for sellers & buyers to arrange insurance on their goods while the Goods are in their "legal" possession. Lack of insurance can result in wasted time, lawsuits, and broken relationships. 🞂 INCOTERMS can thus have a direct financial impact on a company's business. What is important is not the acronyms, but the business results. Often companies like to be in control of their freight. 🞂 That being the case, sellers of goods might choose to sell CIF, which gives them a good grasp of shipments moving out of their country, and buyers may prefer to purchase FOB, which gives them a tighter hold on goods moving into their country. Academic year 202013/2014 18/2019 The seller usually guarantees certain characteristics of the product for a certain period of time, but would generally seek to limit this guarantee as far as possible. Laws on product liability are usually strict and can not be altered by contract. Only the amount of damage can be reduced. (ceiling) Clauses on warranty are usually followed by clauses concerning indemnification and regulation concerning the non fulfilment of the assumed obligation. Academic year 202013/2014 18/2019 Incoterms are standard trade definitions most commonly used in international sales contracts. Devised and published by the International Chamber of Commerce, they are at the heart of world trade. Each group means additional responsibilities and costs for the exporter. For example, the most commonly used terms under each of these groups are: Ex Works (EXW), Free Alongside Ship (FAS), Free On Board (FOB), Cost and Freight (CFR), Cost, Insurance and Freight (CIF), and Delivered Duty Paid (DDP. INCOTERMS The first letter is an indiction of the group to which the term belongs. ICC introduced the first version of Incoterms - short for "International Commercial Terms" - in 1936. Since then, ICC expert lawyers and trade practitioners have updated them six times to keep pace with the development of international trade (actual version 2004). Academic year 202013/2014 18/2019 Academic year 202013/2014 18/2019 EXW - Ex-Works, named place where shipment is available to the buyer, not loaded. The seller will not contract for any transportation. International Carriage NOT Paid by Seller FCA - Free Carrier, unloaded at the seller's dock OR a named place where shipment is available to the international carrier or agent, not loaded. This term can be used for any mode of transport. FAS - Free Alongside Ship, named ocean port of shipment. Ocean shipments that are NOT containerized. FOB - Free On Board vessel, named ocean port of shipment. This term is used for ocean shipments only where it is important that the goods pass the ship's rail.

United Nations Convention on Contracts for the International Sale of Goods. (CISG). Adopted by a diplomatic conference on 11 April 1980, the Convention establishes a comprehensive code of legal rules governing the formation of contracts for the international sale of goods, the obligations of the buyer and seller, remedies for breach of contract and other aspects of the contract. The Convention entered into force on 1 January 1988. Academic year 2018/2019 2017/2018 🞐 The United Nations Convention on Contracts for the International Sale of Goods (also referred to CISG) is a treaty offering a uniform international sales law that, as of July 2008, had been ratified by 71 countries that account for a significant proportion of world trade, making it one of the most successful international uniform laws. Japan is the most recent state to have ratified the Convention. 🞐 The CISG was developed by the United Nations Commission on International Trade Law (UNCITRAL) and was signed in Vienna in 1980. The CISG is sometimes referred to as the Vienna Convention (but is not to be confused with other treaties signed in Vienna). 🞐 It came into force as a multilateral treaty on 1 January 1988, after being ratified by eleven countries. 🞐 CISG has been regarded as a success for UNCITRAL as the Convention has since been accepted by States from ‘every geographical region, every stage of economic development and every major legal, social and economic system. Academic year 2018/22017/2018 019 Formation of an international sales contract Classic way: Offer and Acceptance. An offer may also appear in form of an order, that is performed by the other party. Battle of Forms: Often the parties exchange orders and acceptances or counterorders in forms, that are accompanied by the general contractual conditions. The question hereby arises, if a contract was made (matching orders) and what its contents are. Academic year 2018/22017/2018 019 THE INCOTERMS INCOTERMS 2010 by the International Chamber of Commerce (ICC) ICC rules for the use of domestic and international trade terms Academic year 2018/22017/2018 019 🞂 It is essential for shippers to know the exact status of their shipments in terms of ownership and responsibility. 🞂 It is also vital for sellers & buyers to arrange insurance on their goods while the Goods are in their "legal" possession. Lack of insurance can result in wasted time, lawsuits, and broken relationships. 🞂 INCOTERMS can thus have a direct financial impact on a company's business. What is important is not the acronyms, but the business results. Often companies like to be in control of their freight. 🞂 That being the case, sellers of goods might choose to sell CIF, which gives them a good grasp of shipments moving out of their country, and buyers may prefer to purchase FOB, which gives them a tighter hold on goods moving into their country. Academic year 202017/2018 18/2019 The seller usually guarantees certain characteristics of the product for a certain period of time, but would generally seek to limit this guarantee as far as possible. Laws on product liability are usually strict and can not be altered by contract. Only the amount of damage can be reduced. (ceiling) Clauses on warranty are usually followed by clauses concerning indemnification and regulation concerning the non fulfilment of the assumed obligation. Academic year 202017/2018 18/2019 Incoterms are standard trade definitions most commonly used in international sales contracts. Devised and published by the International Chamber of Commerce, they are at the heart of world trade. Each group means additional responsibilities and costs for the exporter. For example, the most commonly used terms under each of these groups are: Ex Works (EXW), Free Alongside Ship (FAS), Free On Board (FOB), Cost and Freight (CFR), Cost, Insurance and Freight (CIF), and Delivered Duty Paid (DDP. INCOTERMS The first letter is an indiction of the group to which the term belongs. ICC introduced the first version of Incoterms - short for "International Commercial Terms" - in 1936. Since then, ICC expert lawyers and trade practitioners have updated them six times to keep pace with the development of international trade (actual version 2004). Academic year 202017/2018 18/2019 Academic year 202017/2018 18/2019 EXW - Ex-Works, named place where shipment is available to the buyer, not loaded. The seller will not contract for any transportation. International Carriage NOT Paid by Seller FCA - Free Carrier, unloaded at the seller's dock OR a named place where shipment is available to the international carrier or agent, not loaded. This term can be used for any mode of transport. FAS - Free Alongside Ship, named ocean port of shipment. Ocean shipments that are NOT containerized. FOB - Free On Board vessel, named ocean port of shipment. This term is used for ocean shipments only where it is important that the goods pass the ship's rail.